Gold and Silver Prices Edge Higher, Bullion Coins Flat

Gold and silver prices rose modestly on Wednesday. A weaker U.S. dollar and continued uneasiness over European debt woes were among the cited reasons for gold’s slight gains.

"There is still an underlying concern about the development in Europe going forward, which can be reflected in the increase in the prices of credit default swaps in German government debt. Perhaps some people think gold doesn’t look like a bad place for refuge," Peter Buchanan, senior economist at CIBC World Markets, was quoted on Reuters.

In New York futures prices, February gold rose $2.20, or 0.2%, to close at $1,388.30 an ounce, which was the yellow metal’s best price since since November 12, 2010. Gold hit an intraday low of $1,383.00 and a high of $1,398.30. It is up 26.6% this year.

Silver futures prices for March delivery ended up 20.1 cents, or 0.7%, to $28.413 an ounce. Silver prices are 68.7% higher in 2010.

March palladium rallied $29.30, or 4.2%, to close at $732.30 an ounce. The metal is up 79.1% in 2010.

January platinum futures prices added $17.60, or 1.1% to $1,684 an ounce. Platinum is 14.5% higher this year.

Action was mostly muted Wednesday for United States Mint American Eagle bullion coins. The largest 1 oz American Gold Eagle was the only bullion piece to show improvement, rising a modest 2,000.

Hitting the news in a big way, however, was the United States Mint’s announcement that it would begin selling America the Beautiful Silver Bullion Coins on December 6, 2010. The highly anticipated 5 ounce .999 fine silver bullion coins will be distributed through the same channels as the bullion American Silver Eagles. The Mint said it will offer up to 165,000 of the coins this year, evenly spread between the five 2010-dated issues. The Mint also said it would offer another 135,000 of the coins in special uncirculated condition for collectors beginning in the first quarter of 2011.

The America the Beautiful Silver Bullion Coin Program is similar to the America the Beautiful Quarters® Program — both were authorized under the same law (Public Law 110-456). The coins share the same designs and honor national parks and national sites throughout the U.S. and its territories. The programs debuted this year and will last until at least 2021. During that time, a total of 56 unique designs will grace the reverse side of circulating quarters and the new America the Beautiful Silver Bullion Coins.

Here are the latest United States Mint bullion coin sales figures:

December 2010 US Mint Bullion Coin Sales

December 2010

Daily Gain

2010 Totals

American Buffalo Gold

Sold Out

209,000

1 oz American Gold Eagle

2,000

2,000

1,086,500

1/2 oz American Gold Eagle

0

0

45,000

1/4 oz American Gold Eagle

0

0

60,000

1/10 oz American Gold Eagle

0

0

385,000

American Silver Eagle

0

0

32,890,500

Figures above are in coins, not ounces of gold sold.

In other world bullion prices, the London PM gold fixing price was $1,385.50 an ounce, up $2. Silver was $28.74 an ounce, which was $1.61, or 5.9%, higher than the $27.13 price on Tuesday.

In London PGM metals, palladium was fixed to $716 an ounce for a pick-up of $14, or 2%, and platinum was $1,675 an ounce for a gain of $17, or 1%.